Walt Disney Co. has secured enough shareholder votes to defeat a challenge to its board of directors from Nelson Peltz’s hedge fund Trian Fund Management, people familiar with the matter said on Tuesday.
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A multi-million dollar smear battle walt disneyThe future officially ends on Wednesday, when the company is expected to announce that shareholders have rejected two hedge fund proposals to shake up the entertainment giant’s board.
Disney received enough shareholder votes on Tuesday to defeat a challenge from billionaire investors Nelson Peltz and Blackwell Capital, people familiar with the matter told Reuters. Sources warned that some shareholders may change their votes.
If Disney does win, it would be a win for CEO Bob Iger, who has led the Mouse House through the industry’s shift to streaming.
Vanguard Group, the company’s largest shareholder, and other investors voted to support Iger and 11 other current directors, people familiar with the matter said.
A Disney spokesman did not immediately respond to a request for comment. Terrian and Blackwells were unavailable for comment.
Official results will be announced at Disney’s annual shareholder meeting, which is scheduled to be broadcast live starting at 10 a.m. PT (1700 GMT) on Wednesday.
Trian Fund Management CEO Peltz and Blackwells have been seeking five seats on Disney’s 12-person board. Activists say the $225 billion media company botched its CEO succession plan, lost its creative spark and failed to properly leverage new technologies.
The fight, which has been bitter and closely watched, is a referendum on Disney’s efforts to revive its film and television franchises, make its streaming business profitable and find partners to help build the digital future of sports network ESPN.
Both parties have spent millions on campaigns trying to convince voters, launching public and personal attacks.
Peltz has been seeking board seats for himself and former Disney CFO Jay Rasulo. Disney said the pair lacked the necessary skills and had “nothing new” to recommend for improvements, noting that Rasulo had been passed over to replace Iger.
Peltz at one point responded that Disney was “stupid” for opposing him and believed he was trying to help Iger.
In the final hours before the vote closed, billionaire activist investor Bill Ackman, himself a veteran of proxy fights, said in a post on X that Peltz Will “significantly complement” Disney’s board of directors.
Trian was Disney’s fifth-largest shareholder as of Dec. 31, with a 1.76% stake, according to London Stock Exchange Group data. The hedge fund’s $3 billion bet on Disney was the main reason its performance lagged its aggressive peers last year, according to financial details Trian investors provided to Reuters.
Disney’s stock price peaked at $201.91 in March 2021, when the company was attracting streaming subscribers. Shares subsequently fell as the streaming unit continued to lose money. Disney’s board fired then-CEO Bob Chapek and put Iger back at the helm.
The company’s stock has rebounded 35% this year on positive earnings and moves such as a $1.5 billion investment in Fortnite maker Epic Games and a partnership with Fox Corp. and Warner Bros. Discovery to develop a sports streaming app. at $122.82. It is still down 39% from its all-time high.
Iger, 72, has enjoyed a rare wave of public support in a proxy battle. They include Star Wars creator George Lucas, Disney family members, JPMorgan CEO Jamie Dimon and Emerson Collective founder Laurene Powell Jobs.
Disney also received support from proxy advisory firm Glass Lewis. Another advisory firm, Institutional Shareholder Services, recommended Peltz, and pension fund giant CalPERS backed Peltz and Rasulo.
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